Interbank rates fall sharply

Interbank rates has fallen sharply from 0.26 percent to 0.98 percent for all terms while SBV continued to inject net capital into the market for the second consecutive week with a net amount of nearly 10 trillion dong.

According to BVSC’s weekly newsletter from April 17 to April 21, SBV injected 38 trillion dong through OMO last week. The amount of capital maturing in the week was 28.023 trillion dong. In other words, 9.977 trillion dong was injected through the SBV. In addition, SBV did not issue bills for all terms.

This demonstrated that the liquidity of the banking system was not too redundant, said BVSC

The interbank rates tended to fall sharply (within a range of 0.26 percent – 0.98 percent) for all terms last week. Specifically, the overnight rate fell by 0.26 percent to 4.55 percent per annum; one-week rate fell by 0.98 percent to 3.73 percent per annum and two-week rate fell by 0.93 percent to 3.82 percent per annum.

According to BVSC, the decline in interbank rates suggest the recovery of system liquidity.

In the previous week, interbank rates fell slightly (range from 0.05 percent to 0.09 percent) on one-week and two- week terms. Specifically, the average rates on the two above terms decreased by 0.09 percent and 0.05 percent to 4.71 percent per annum and 4.75 percent per annum respectively. Meanwhile, the average overnight rate increased by 0.11 percent to 4.81 percent per annum.